AFP
CTP · Question #614
(Topic 7) A company's overall cost of capital depends on the:
The correct answer is A. mix of long term debt and equity, and the cost of each. See the full explanation below for the reasoning.
Question
- (Topic 7)
A company’s overall cost of capital depends on the:
Options
- Amix of long term debt and equity, and the cost of each.
- Bweighted average cost of interest expense and dividends.
- Ccost associated with debt and expected dividend returns.
- DWACC of the industry of which the company is part.
How the community answered
(23 responses)- A78% (18)
- B4% (1)
- C4% (1)
- D13% (3)
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